A Revaluation of the Exchange Rate Is a Policy Action

question 46

Multiple Choice

A revaluation of the exchange rate is a policy action that

• A) increases the real exchange rate.
• B) decreases the real exchange rate.
• C) increases the nominal exchange rate.
• D) decreases the nominal exchange rate.
• E) fixes the nominal exchange rate.

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Definitions:

Basic Psychological Needs

Fundamental requirements for mental well-being, including autonomy, competence, and relatedness.

Self-Determination Theory

A psychological theory that explains human motivation in terms of our innate needs for competence, autonomy, and relatedness.

Self-Actualization Needs

The highest level in Maslow's hierarchy of needs, representing the realization of one's potential, self-fulfillment, seeking personal growth, and peak experiences.

Maslow

Refers to Abraham Maslow, a psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.